DWP Announces Updated Universal Credit Rates Effective April

DWP Announces Updated Universal Credit Rates Effective April

The Department for Work and Pensions (DWP) has announced new Universal Credit rates effective from April 6. This update aims to provide significant annual financial support to many households across the UK.

DWP’s Updated Universal Credit Rates Effective April 2026/27

Nearly four million households will experience an average income increase of around £725 due to the adjustments introduced by the DWP. These changes affect approximately 8.4 million individuals currently claiming Universal Credit.

Details of New Payment Rates

The new payment structure is part of the reforms laid out in the Universal Credit Act, intended to rebalance core payments and health supplements. Below is a summary of the updated monthly rates:

  • Single Claimants:
    • Under 25: £338.58 (from £316.98)
    • 25 or over: £424.90 (from £400.14)
  • Couples:
    • Both under 25: £528.34 (from £497.55)
    • One or both 25 or over: £666.97 (from £628.10)
  • Child Amounts:
    • First child (born before April 6, 2017): £351.88 (from £339)
    • First child (born on or after April 6, 2017) or subsequent children: £303.94 (from £292.81)
  • Limited Capability for Work:
    • Standard amount: £158.76 (no change)
    • Work-related amount: £217.26 (from £423.27)
    • Higher amount (severe conditions or terminal illness): £429.80
  • Carer Amount: £209.34 (from £201.68)

Work Allowances

  • Higher work allowance: £710.00 (from £684.00)
  • Lower work allowance: £427.00 (from £411.00)

Changes to Health Elements

As part of the reforms, the DWP plans to reduce the health top-up for new claims to £50 per week starting April 2026. Existing recipients will still receive the higher health payment if they meet specific criteria, including severe conditions or terminal illness.

Important Considerations for Claimants

Most benefits, including Universal Credit, are paid in arrears. This means claimants may not receive the updated rates until after the first payment cycle post-April 6, likely resulting in payments arriving by May.

The DWP’s reforms aim to correct imbalances in the Universal Credit system, which inadvertently encourages dependency. For detailed information regarding the new rates, individuals can visit GOV.UK or follow Filmogaz.com for ongoing updates.